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16. Facility Layout Decision

After selecting a facility’s location, the next major decision is to design the best physical layout for the facility. The available space needs to be assessed with workstations, equipment, and storage; and other amenities need to be arranged. The goal is to create the most efficient workflow necessary to produce its goods or services at the highest level of quality with the lowest possible cost.

Layout planning is organizationally important not only for efficient operations but also for other functions that are impacted as well, such as marketing, which is affected by layout when clients come to the site, human resources because layout impacts people, and finance because layout changes can be costly endeavors.

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